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Thirlwall’s Law and Uneven Development

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  • Amitava Krishna Dutt

Abstract

Thirlwall’s analysis of balance-of-payments–constrained growth, and what has come to be called Thirlwall’s Law, have usually been used to understand the determinants of growth for individual countries. This paper argues that another important use of Thirlwall’s Law is to understand the mechanics of uneven development between rich and poor countries. To contribute to such an analysis the paper incorporates Thirlwall’s analysis into a model of North–South trade to show how it explains uneven development. The paper also points to the needfor empirical work necessary for relating Thirlwall’s Law to uneven development, which is different from the work related to the law that has proliferated in recent years.

Suggested Citation

  • Amitava Krishna Dutt, 2002. "Thirlwall’s Law and Uneven Development," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 24(3), pages 367-390, March.
  • Handle: RePEc:mes:postke:v:24:y:2002:i:3:p:367-390
    DOI: 10.1080/01603477.2002.11490331
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    Cited by:

    1. Porcile, Gabriel & Spinola, Danilo & Yajima, Giuliano, 2021. "Patterns of Growth in Structuralist Models: The Role of PoliticalEconomy," CAFE Working Papers 12, Centre for Applied Finance and Economics (CAFE), Birmingham City Business School, Birmingham City University.
    2. Bilge Erten, 2010. "Industrial Upgrading and Export Diversification: A Comparative Analysis of Economic Policies in Turkey and Malaysia," Working Papers id:2778, eSocialSciences.
    3. Gabriel Porcile & Giuliano Toshiro Yajima, 2019. "New Structuralism and the balance-ofpayments constraint," Review of Keynesian Economics, Edward Elgar Publishing, vol. 7(4), pages 517-536, October.
    4. Sartorello Spinola, Danilo, 2020. "Debating the assumptions of the Thirlwall Model: A VECM analysis of the Balance of Payments for Argentina, Brazil, Colombia, and Mexico," MERIT Working Papers 2020-001, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    5. Anthony Philip Thirlwall, 2012. "Balance of Payments Constrained Growth Models: History and Overview," Palgrave Macmillan Books, in: Elias Soukiazis & Pedro A. Cerqueira (ed.), Models of Balance of Payments Constrained Growth, chapter 1, pages 11-49, Palgrave Macmillan.
    6. Maria Carolina Basso, 2016. "A Economia Brasileira Sob Restrição Do Balanço De Pagamentos: Uma Análise Empírica Da Lei De Thirlwall No Boom Das Commodities," Anais do XLII Encontro Nacional de Economia [Proceedings of the 42nd Brazilian Economics Meeting] 089, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    7. Bilal Raza, 2021. "Balance of Payments Constrained Growth in Pakistan - Implications for Development Policy," SBP Working Paper Series 107, State Bank of Pakistan, Research Department.
    8. Sasaki, Hiroaki, 2019. "North-South Uneven Development and Income Distribution under the Balance of Payments Constraint," MPRA Paper 91469, University Library of Munich, Germany.
    9. Mario Cimoli & Gabriel Porcile, 2014. "Technology, structural change and BOP-constrained growth: a structuralist toolbox," Cambridge Journal of Economics, Oxford University Press, vol. 38(1), pages 215-237.
    10. Armon Rezai, 2015. "Demand and distribution in integrated economies," Cambridge Journal of Economics, Oxford University Press, vol. 39(5), pages 1399-1414.
    11. Sasaki, Hiroaki, 2018. "North-South Trade and Uneven Development in a Classical Conventional Wage Share Growth Model," MPRA Paper 88631, University Library of Munich, Germany.
    12. Nishi, Hiroshi, 2016. "A multi-sectoral balance-of-payments-constrained growth model with sectoral heterogeneity," Structural Change and Economic Dynamics, Elsevier, vol. 39(C), pages 31-45.
    13. Vinicius Curti Cicero & Gilberto Tadeu Lima, 2020. "Functional Distribution of Income as a Determinant of Importing Behavior: An Empirical Analysis," Working Papers, Department of Economics 2020_25, University of São Paulo (FEA-USP).
    14. Sasaki, Hiroaki & Sonoda, Ryunosuke, 2020. "International Competition, Income Distribution, and North-South Uneven Development under the Balance of Payments Constraint," MPRA Paper 103004, University Library of Munich, Germany.
    15. Spinola, Danilo, 2020. "Uneven development and the balance of payments constrained model: Terms of trade, economic cycles, and productivity catching-up," Structural Change and Economic Dynamics, Elsevier, vol. 54(C), pages 220-232.
    16. Lídia Brochier, 2020. "Conflicting‐claims and labour market concerns in a supermultiplier SFC model," Metroeconomica, Wiley Blackwell, vol. 71(3), pages 566-603, July.
    17. A. P. Thirlwall, 2013. "Economic Growth in an Open Developing Economy," Books, Edward Elgar Publishing, number 15208.
    18. Arslan Razmi, 2015. "The Limits to Wage-Led Growth in A Low-Income Economy," Metroeconomica, Wiley Blackwell, vol. 66(4), pages 740-770, November.
    19. Robert A. Blecker, 2009. "Long-Run Growth in Open Economies: Export-Led Cumulative Causation or a Balance-of-Payments Constraint?," Working Papers 2009-23, American University, Department of Economics.
    20. Félix Jiménez, 2018. "Capacidad productiva, cambio técnico y productividad: Estimaciones alternativas del producto de largo plazo," Documentos de Trabajo / Working Papers 2018-454, Departamento de Economía - Pontificia Universidad Católica del Perú.

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